Last checked at 4 Sep 2020 07:00
Renew Holdings plc
("Renew" or the "Group")
Trading Update
Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces an update on trading in advance of its annual results for the financial year ended 30 September 2020 which will be announced on Tuesday 8 December 2020.
Trading since the announcement of our interim results has been strong and consequently the Board expects the Group's full year results to be materially ahead of current market expectations with adjusted operating profit forecast to be between £39m-£40m. This improved forecast result is reflective of our defensive qualities, resilience and the implementation of numerous mitigation measures that have proven to be extremely effective in responding to the challenges of Covid-19.
Our engineering activities in our Rail, Infrastructure and Environmental markets have remained robust and reliable throughout the Covid-19 pandemic. The UK Government designated the majority of our activities as critical to the Covid-19 response and we have safely and proactively responded to the ongoing network demands. In Energy, as previously announced, all site activities at Sellafield and Springfields were suspended in March. Site activities are steadily being re-mobilised however we do not expect to be fully operational at these sites until the 2nd half of our next financial year.
We are pleased to confirm that the integration of Carnell, acquired in January 2020, is complete and it is trading in line with our expectations and unaffected by Covid-19 reflecting the strength of its market and the nature of the essential services it provides.
Cash generation continues to be very strong and we anticipate reporting a net cash position at the year end, ahead of market expectations.
Our proven resilience and the reliable long-term nature of the UK infrastructure markets in which we are deeply embedded gives the Board confidence in our strategy and the continued success of the Group.
Enquiries:
Renew Holdings plc | Tel: 0113 281 4200 | ||
Paul Scott, CEO |
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Sean Wyndham-Quin, CFO |
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Numis Securities Limited (Nominated Adviser & Broker) | Tel: 020 7260 1000 | ||
Stuart Skinner/ Kevin Cruickshank |
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Walbrook PR | Tel: 020 7933 8780 or renew@walbrookpr.com | ||
Paul McManus | Mob: 07980 541 893 | ||
Lianne Cawthorne | Mob: 07584 391 303 | ||
Nick Rome | Mob: 07748 325 236 | ||
About Renew Holdings plc
Engineering Services, which accounts for over 90% of Group revenue and over 95% of operating profit, focuses on the key markets of Infrastructure, Energy (including Nuclear) and Environmental, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
Specialist Building focuses on the High Quality Residential and science markets in London and the Home Counties.
For more information please visit the Renew Holdings plc website: www.renewholdings.com
This announcement is released by Renew Holdings plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR). It is disclosed in accordance with the Group's obligations under Article 17 of MAR. Upon the publication of this announcement, this information is considered to be in the public domain.
For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Renew Holdings plc by Sean Wyndham-Quin, Chief Financial Officer.